The move is in line with Gokongwei group’s strategy to capture a bigger chunk of the multibillion peso pharmacy market, currently dominated by Mercury Drug Corp.
In a statement, RRHI said subsidiary South Star Drug Inc. signed an agreement with Mulgrave Corp. B.V (MCBV), a wholly-owned subsidiary of Dairy Farm International Holdings Ltd., to acquire 100% of Rose Pharmacy.
Rose Pharmacy was established in 1952 as family-run drugstore in Cebu City with the goal of providing quality and affordable medicines to communities.
Dairy Farm acquired 49% share in the Cebu-based business in 2015, and increased its interest in Rose Pharmacy to 100% in November 2018.
Rose Pharmacy is the leading drugstore chain in the Visayas with nearly P9 billion in net sales in 2019.
“I am delighted that Rose Pharmacy will be part of our portfolio as it takes us back to our hometown in Cebu, where my father and JG Summit Holdings and RRHI founder John Gokongwei Jr. started as an entrepreneur,” said Robina Gokongwei-Pe, president and CEO of RRHI.
Gokongwei-Pe said her father admired Rose Pharmacy for its strong brand reputation in Visayas and Mindanao.
She said the deal also “further bolsters our strategic partnership with Dairy Farm to strengthen our position in Philippine multi-format retailing.”
“ We first worked with Dairy Farm for the acquisition of Rustan Supercenters, Inc. in 2018, which deepened our footprint in the premium supermarket space. Our acquisition of Rose Pharmacy yet again offers ripe opportunities for innovation through strategic synergies,” she said.